Core Concepts In The 2 Properties To Financial Freedom

[arve url="https://www.youtube.com/watch?v=lXKHz_xOHSU" mode="lazyload" align="center" /] What are the key ideas/core concepts that make the '2 Properties to Financial Freedom' strategy different from other strategies out there? Book a free strategy session - https://onproperty.com.au/session/ Download the 2 Properties Cheat Sheet - https://onproperty.com.au/2properties/ 0:41 - The basics of the '2 Properties to Financial Freedom' strategy 2:35 - Core Concept #1: These Properties Will Pay Themselves Off! 6:25 - Core Concept #2: You can set yourself up for financial freedom in a short period of time (about 2-5 years for most people) 9:33 - Core Concept #3: There is a clear path to financial freedom without relying on capital growth 14:13 - Core Concept #4: There are 3 key stages to this strategy (#1. Buy and Build Properties, #2. Pay Off Debt, #3. Freedom) 18:26 - Core Concept #5: You don't need financial freedom to gain choices in your life and pursue happiness 23:53 - Core Concept #6: You stop once you're financially free, you can build your wealth even more 27:10 - Core Concept #7: You can still buy you're own home 30:26 - Core Concept #8: You don't need to stop at just 2 properties 34:31 - Core Concept #9: There is a lot of flexibility in this strategy 37:00 - Get the cheat sheet https://onproperty.com.au/2properties/ Simon bought his first property: https://www.youtube.com/watch?v=HP376QV3qi4 Live strategy session with Ryan McLean: https://www.youtube.com/watch?v=TEx0-ZPQhco What it feels like to be financially free: https://www.youtube.com/watch?v=xVzvDkMpZ3k Transcription: I spoken a lot about the two properties to financial freedom strategy. And today I want to talk about some of the core concepts that you need to understand in order to make this strategy work. So we're going to spend a bit of time today looking at some of the key ideas that make this investment strategy different from other strategies and the key ideas that you need to wrap your head around in order to really understand the strategy and make this strategy work for you. So it's going to be a bit of a longer one today. So strap in, I hope you enjoy it. Hey, I'm Ryan from on-property dot com dot. A U helping you achieve financial freedom. And I've been talking for the last year about this two properties to financial freedom strategy. If this is the first time that you've heard it, the idea here is that you can set yourself up for financial freedom quite easily through investing in property. Instead of having some fancy fandangled property investment strategy where you had to buy 10 properties in 10 years and sell some and keep some, the strategy is very simple and straightforward. The idea is you purchase two properties, two houses to be precise and on each of those properties you build to granny flats in order to get extra rental income in order to get a positive cashflow. What you then do is focus on paying off those properties and in fact those properties will actually go ahead and pay themselves off, but you can obviously work harder to pay themselves off, so you purchased the properties, build the granny flats, then you pay off the debt and once the debt is paid off and you no longer have to pay a mortgage, you then live off the rental income of those properties. Now I do apologize for the background noise. I am filming it right next to a work site next door. They're building this I think five or six story apartment complex right next to where I am. So I apologize for the work noise in the background. Hopefully it's not too bad. So let's have a talk about some of the core concepts around this idea. Now that you understand the strategy which has purchased two properties built to granny flats show you're in a cash flow positive position, pay those properties off over time and then once those properties are paid off, you then live off the rental income and you're financially free. This strategy takes about 15 to 25 years in order to reach that financial freedom, but actually purchasing the properties and building the granny flats can be done in a much shorter period of time. So the first concept that I really want to hone in on is this idea that these properties will actually pay for themselves. So when you purchase the properties, you probably know about negative gearing and investing in properties where you hope they're going to go up in value. These properties that are negatively geared generally costs you money every single month. So you purchase them, you're getting some rental coming in, but your expenses like rental manager fees, counsel rates, insurances as well as your mortgage tend to be higher than the rental income coming in. The reason that we go ahead and build the granny flats is so that we can be in a positive cashflow position or cashflow neutral position. And so what this means is that the properties and now paying for themselves, so we have more rental income coming in than we have expenses going out. So our rental income, we'll pay our property manager fees, they'll pay our council rates, they'll pay out insurances that pay our maintenance and they will also pay our mortgage, including the principal and the interest of the loans. So the rental income comes in, the expenses go out and you have money leftover. But with the expenses that are going out, you're also paying off your loan. So effectively if you purchase these properties, rented them out and then you stepped back from them and you just let the rental income come in and to pay for the properties, you step back. You don't really have anything to do with it apart from managing it. You're not adding money into it. You're not doing any of that sort of stuff. These properties in theory should then go on to actually pay themselves off. So you have a 25 year loan term that over 25 years, those properties will pay themselves off. And this is really powerful for the two property to financial freedom concept because the idea here is that you spend a couple of years with intense focus. Simon just bought his first property. I'll link up to an interview I did with him down below where he's talking about actually looking to buy his second property. But you spend a couple of years, maybe two to five years where you're focusing on saving a deposit, you're researching the market, you're actively buying property and building granny flats. But once you've done that, once you've acquired the properties, you can then take your foot off the gas because those properties will now go on to pay themselves off and once they're paid off, then you'll be able to live off the rental income and be financially free. So that core concept that these properties will pay themselves off is so important because it means that you work a couple of years, you work hard, you save the deposit, you work hard to buy exactly the right properties for you and for your circumstances and your goals. But once those properties are purchased, once they bought, it's not a hard slog of 15 2025 years in order to achieve financial freedom. The hard slog is in that two to five year period of acquiring the properties and then you can relax, take your foot off the gas and those properties will actually pay themselves off. You can then accelerate this and pay them off faster by using things like rental increases to put more money on the mortgage. Or you can work hard and put extra money on the mortgage to pay them off as quickly as possible as well. So you can take your foot off the gas or you can actually accelerate that work hard to pay them off faster to achieve financial faster, but you don't have to. So you're setting yourself up for financial freedom in that first stage of buying the properties and you set yourself up because those properties would go on to pay themselves off. So that's kind of one of the most important concepts to do with this strategy. So I hope I did a good job in communicating that and I hope you really understand that idea that these properties once purchase, we'll go ahead and pay themselves off. The next core concept is the fact that you can set yourself up for financial freedom in a quite a short time period. So I say about two to five years. That will vary from person to person. Some people will take longer than five years, some people can feasibly do this in a 12 month period. And I've seen clients of Ben's clients are pumped on property, actually do this in a 12 month period. So it can be done quicker than this. It can take longer than this, but two to five years is kind of achievable I think for a lot of people out there. And that's because you're setting yourself up for financial freedom. So the goal is not, I guess the core concept here is that the goal is not to end to achieve financial freedom and then be happy. The goal is actually to set yourself up for financial freedom. So we'll talk a little bit in a minute about the different stages of this strategy and why that's important. But you'll go shifts from, okay, I need to reach an end point where I will be financially free and I can quit my job too. I need to actually acquire enough properties and because they're going to pay themselves off, they'll make me financially free in the future. So your goal becomes acquiring those properties, which I call setting yourself up for financial freedom. So because they're going to pay for themselves, all you have to do is acquire them and build the granny flats to set yourself up for financial freedom. So rather than your goal being 15 2025 years down the track of when you're actually going to achieve financial freedom, your goal becomes that two to five year window of buying the properties and building the granny flats and setting yourself up for financial freedom. So I call these properties your foundational properties because you're laying the foundation for your financial freedom.